Global digital commerce spending set to grow 11%, reaching $11.6tn this year
Digital commerce spending is expected to surge to more than $11.6 trillion by the end of this year, rising nearly 11.5 per cent from $10.5tn last year, according to a new report.
This amount includes money transfers and payments related to digital as well as physical goods purchases, digital ticketing, banking, bills and near field communication mobile retail, Juniper Research said in a report.
Mobile commerce will account for 73 per cent of all digital trade transactions by value this year, a figure that is set to rise to 79 per cent by 2025.
Mobile has emerged as the most important way to access services and user experiences must be mobile-first, the report said.
“Mobile apps are the dominant force in digital commerce, with user experiences becoming critical as products become heavily commoditised,” said Nick Maynard, author of the research report.
“Merchants must leverage AI-based analytics to ensure a truly personalised mobile commerce experience or they will lose out to more digitally adept merchants,” he added.
The Covid-19 pandemic has accelerated the adoption of cross-border digital commerce and payments. Such systems have made it easier for small and medium enterprises to continue operations and for consumers to purchase goods and services from around the world.
Juniper Research said that consumer behaviour will become increasingly digital, rather than reverting to pre-pandemic norms.
However, it also said reactive digital commerce strategies built by merchants during the pandemic need to turn into long-term strategies.
In January, global payments company Mastercard said up to 30 per cent of the Covid-related surge in digital e-commerce spending is set to be a permanent feature as online retail spending in the Middle East and Africa region grows.